If you’ve been watching the market, you’ve likely noticed a few changes already this year. But what’s next?
From home prices to mortgage rates, here’s what the latest expert forecasts suggest for the rest of 2025 – and what these shifts could mean for you.
Will Home Prices Fall?
Many buyers are hoping home prices will come down soon. And recent headlines about prices dipping in some areas are making some people believe it’s just a matter of time before there’s a bigger drop.
But here are the facts. While home price growth is slowing down, that doesn’t mean we’re headed for a crash.
As NAHB explains:
“House price growth slowed . . . partly due to a decline in demand and an increase in supply. Persistent high mortgage rates and increased inventory combined to ease upward pressure on house prices. These factors signaled a cooling market, following rapid gains seen in previous years.”
Even with that slowdown, experts say prices will still rise this year at the national level.
The average of eight leading forecasters shows prices are expected to go up 1.5–2% in 2025:
That means if you’re waiting for a major drop, experts agree that’s just not in the cards.
While some markets are seeing small price declines, the average dip is only -3.5%, which is far from the nearly 20% decline seen during the 2008 housing crash.
And when you look at the bigger picture, those small changes are minimal. Data from the Federal Housing Finance Agency shows prices are up 55% nationally compared to five years ago.
Bottom line on prices: They aren’t crashing. They’re expected to keep climbing — just more slowly, and with local variation.
Will Mortgage Rates Come Down?
Another common thought among buyers today is: “I’ll just wait for rates to come down.” But is that a smart strategy?
According to Yahoo Finance:
“If you’re looking for a substantial interest rate drop in 2025, you’ll likely be left waiting. The latest news from the Federal Reserve and other key economic data point toward steady mortgage rates on par with what we see today.”
In other words, don’t try to time the market or wait for a drop that may not be coming.
Most experts say rates will remain in the 6% range, with projections showing them settling in the mid-6% range by the end of 2025:
That’s not a major change from where rates are today. So if you need to move, it may make more sense to plan around current conditions instead of waiting for something the data doesn’t support.
Working with an expert who understands how inflation, economic data, and Federal Reserve policy affect rates will be especially important this year.
The Takeaway for Buyers and Sellers
Whether you're buying, selling, or considering both, today’s market requires strategy — not guesswork.
Prices are still rising nationally (just more slowly), and mortgage rates are expected to stay relatively stable. The bigger picture is one of moderation, not a meltdown.
Bottom Line
If you’re thinking about making a move, focus on your personal situation instead of the headlines. Work with a knowledgeable real estate professional who understands your local market and can help you build a plan that works for you.
